Depreciation Rate Chart As Per Income Tax For AY 2017-18, FY 2016-17

Depreciation Rate Chart Per Income Tax AY 2017-18, FY 2016-17

Depreciation Rate Chart Per Income Tax AY 2017-18, FY 2016-17. Depreciation Rate Chart As Per Income Tax Act. Download Depreciation Rate Chart as per Income Tax Act. depreciation rate chart as per income tax for 2017-18. Latest New Depreciation Rates issued by Income Tax Department. There are many queries regarding Depreciation rate chart like – depreciation rate in income tax, depreciation under income tax act etc. Now You can Scroll Down Below and check complete details regarding Latest Depreciation RateAs Per Income Tax Act Now You can Scroll Down Blow and Download Depreciation Rate Chart As Per Income Tax Act.

What Is Depreciation

While computing profits and gains from business or profession, a taxpayer can claim depreciation on all those assets which he has acquired and used for the purpose of his business or profession. Different depreciation rates are prescribed for different nature of assets. This write up lists down all such depreciation rates.

Calculation of Depreciation

Depreciation is Calculated as per the provisions of income tax act for income tax return and companies are calculated as per companies act. So Depreciation is calculated by two method one is as per companies act or one is as per income tax act. Today we provide depreciation chart as per income tax act for easily calculate depreciation.

Depreciation Rate Chart As Per Income Tax

As per Income Tax Act 1962 Depreciation calculation is mandatory. So All firms who furnish return to income tax return calculate depreciation as per income tax act

Depreciation rates as per I.T Act for most commonly used assets

S No.

Asset Class

Asset Type

Rate of Depreciation

1.

Building

Residential buildings except hotels and boarding houses

5%

2.

Building

Hotels and boarding houses

10%

3.

Building

Purely temporary erections such as wooden structures

100%

4.

Furniture

Furniture – Any furniture / fittings including electrical fittings

10%

5.

Plant & Machinery

Motor cars other than those used in a business of running them on hire

15%

6.

Plant & Machinery

Motor buses/taxies/lorries used in a business of running them on hire

30%

7.

Plant & Machinery

Computers and computer software

60%

8.

Plant & Machinery

Books owned by assessee, carrying on profession being annual publications

100%

9.

Plant & Machinery

Books owned by assessee, carrying on profession not being annual publications

60%

10.

Plant & Machinery

Books owned by assessee, carrying on business in running lending libraries

100%

11.

Intangible Assets

Know how, patents, copyright, trademark, license, franchise or any other business or commercial rights of similar nature

25%

Depreciation rates as per I.T Act – Comprehensive Table

S No.

Asset Class

Asset Type

Rate of Depreciation

PART A
TANGIBLE ASSETS

Building

[See Notes 1 to 4 below the TableÂ ]

(1)

Buildings which are used mainly for residential purposes except hotels and boarding houses

5%

(2)

Buildings other than those used mainly for residential purposes and not covered by sub-items (1) above and (3) below

10%

(3)

Buildings acquired on or after the 1st day of September, 2002 for installing machinery and plant forming part of water supply project or water treatment system and which is put to use for the purpose of business of providing infrastructure facilities under clause (i) of subsection (4) of section 80-IA

100%

(4)

Purely temporary erections such as wooden structures

100%

Furniture & Fittings

Furniture and fittings including electrical fittings See Note 5 below the Table

10%

Machinery & Plant

1)

Machinery and plant other than those covered by sub-items (2), (3) and (8) below

15%

2)

Motor cars, other than those used in a business of running them on hire, acquired or put to use on or after the 1st day of April, 1990

15%

3)

(i) Aeroplanes – Aeroengines

40%

(ii) Motor buses, motor lorries and motor taxis used in a business of running them on hire

30%

(iii) Commercial vehicle which is acquired by the assessee on or after the 1st day of October, 1998, but before the 1st day of April, 1999 and is put to use for any period before the 1st day of April, 1999 for the purposes of
business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32
[ See Note 6 below the Table]

40%

(iv) New commercial vehicle which is acquired on or after the 1st day of October, 1998, but before the 1st day of April, 1999 in replacement of condemned vehicle of over 15 years of age and is put to use for any period before the 1st day of April, 1999 for the purposes of business or profession in accordance with the third proviso to clause (ii) of sub-section (1) of section 32 [ See Note 6 below the Table]

60%

(v) New commercial vehicle which is acquired on or after the 1st day of April, 1999 but before the 1st day of April, 2000 in replacement of condemned vehicle of over 15 years of age and is put to use before the 1st day of April, 2000 for the purposes of business or profession in accordance with the second proviso to clause (ii) of
sub-section (1) of section 32 [ See Note 6 below the Table ]

60%

(vi) New commercial vehicle which is acquired on or after the 1st day of April, 2001 but before the 1st day of April, 2002 and is put to use before the 1st day of April, 2002 for the purposes of business or profession [ See Note 6 below the Table ]

(xi) Machinery and plant, used in semi-conductor industry covering all integrated circuits (ICs) (excluding hybrid integrated circuits) ranging from small scale integration (SSI) to large scale integration/very large scale integration (LSI/VLSI) as also discrete semi-conductor devices such as diodes, transistors, thyristors, triacs, etc., other than those covered by entries (viii), (ix) and (x) of this sub-item and sub-item (8) below.

Machinery and plant, used in weaving, processing and garment sector of textile industry, which is purchased under TUFS on or after the 1st day of April, 2001 but before the 1st day of April, 2004 and is put to use before the 1st day of April, 2004[ See Note 8 below the Table ]

50%

7)

Machinery and plant, acquired and installed on or after the 1st day of September, 2002 in a water supply project or a water treatment system and which is put to use for the purpose of business of providing infrastructure facility under clause (i) of sub-section (4) of section 80-IA [ See Notes 4 and 9 below the Table]

(xii) Mineral oil concerns:(a) Plant used in field operations (above ground) distribution –
Returnable packages(b) Plant used in field operations (below ground), but not
including kerbside pumps including under ground tanks and
fittings used in field operations (distribution) by mineral oil
concerns

60%

(xiii) Renewal energy devices being -(a) Flat plate solar collectors(b) Concentrating and pipe type solar collectors(c) Solar cookers(d) Solar water heaters and systems(e) Air/gas/fluid heating systems(f) Solar crop drivers and systems(g) Solar refrigeration, cold storages and air conditioning systems(h) Solar steels and desalination systems(i) Solar power generating systems(j) Solar pumps based on solar-thermal and solar-photovoltaic conversion(k) Solar-photovoltaic modules and panels for water pumping and other applications(l) Wind mills and any specially designed devices which run on wind mills (installed on or after the 1st day of April, 2014)(Notification No. 43/2014)

(m) Any special devices including electric generators and pumps
running on wind energy (installed on or after the 1st day of April, 2014) (Notification No. 43/2014)

Know-how, patents, copyrights, trademarks, licences, franchises or any other business or commercial rights of similar nature

25%

Notes:

“Buildings” include roads, bridges, culverts, wells and tubewells.

A building shall be deemed to be a building used mainly for residential purposes, if the built-up floor area thereof used for residential purposes is not less than sixty-six and two-third per cent of its total built up floor area and shall include any such building in the factory premises.

In respect of any structure or work by way of renovation or improvement in or in relation to a building referred to in Explanation 1 of clause (ii) of sub-section (1) of section 32, the percentage to be applied will be the percentage specified against sub-item (1) or (2) of item I as may be appropriate to the class of building in or in relation to which the renovation or improvement is effected. Where the structure is constructed or the work is done by way of extension of any such building, the percentage to be applied would be such percentage as would be appropriate, as if the structure or work constituted a separate building.

Water treatment system includes system for desalinisation, demineralisation and purification of water.

“Computer software” means any computer programme recorded on any disc, tape, perforated media or other information storage device.

“TUFS” means Technology Upgradation Fund Scheme announced by the Government of India in the form of a Resolution of the Ministry of Textiles vide No.28/1/99-CTI of 31.3.1999.

Machinery and plant includes pipes needed for delivery from the source of supply of raw water to the plant and from the plant to the storage facility.

“Speed boat” means a motor boat driven by a high speed internal combustion engine capable of propelling the boat at a speed exceeding 24 kilometres per hour in still water and so designed that when running at a speed, it will plane, i.e., its bow will rise from the water.